Just double checking

[jasperjue]

Hi
I'm just checking to see that its ok to put in offers at the same time for different properties. Are the actual offers that you initially put in binding if the vendor accepts them or is the only thing that is binding is the resultant contract that the agent comes back with once the vendor agrees with the offer and the buyer then agrees to enter a contract.

I just want to make sure i give the right advice to some rellies

 

[jasperjue]

also there wasn't a time limiting clause on the first offer they put in but i have said they should put a clause in on any subsequent offers.

 

[Bargain Hunter]

Personally I make verbal offers only, you can still include a time component if you like. If more than one offer is accepted then I proceed with the one I want the most, signing the contract as soon as practical to prevent being gazumped.

No REA will remove the property from sale until the contract is signed. You should ensure that there are suitable terms within the contract to ensure that you don't have to buy if it turns out to be a lemon (building and pest) or you can't secure acceptable finance within the cooling off period (period varies from state to state).

Once the cooling off period expires it's costly to pull out of the deal so you can even negotiate a longer cooling off within the contract if you need more time to make the necessary arrangements.

Regards

Andrew

 

[troyhunt]

Go nuts, there is no commitment until contracts are exchanged. An offer is not a binding agreement.

Having said that, always seek independent legal advice etc

 

[AlphaMale]

Personally I make verbal offers only, you can still include a time component if you like. If more than one offer is accepted then I proceed with the one I want the most, signing the contract as soon as practical to prevent being gazumped.

No REA will remove the property from sale until the contract is signed. You should ensure that there are suitable terms within the contract to ensure that you don't have to buy if it turns out to be a lemon (building and pest) or you can't secure acceptable finance within the cooling off period (period varies from state to state).

Once the cooling off period expires it's costly to pull out of the deal so you can even negotiate a longer cooling off within the contract if you need more time to make the necessary arrangements.

Regards

Andrew

Hi,

I was about to ask the same question...

So what happens when you sign the contract with a finance clause, the cooling-off period expires and you weren't able to secure an acceptable finance?

Do you lose your holding deposit (I've read here this is usually 0.25% of the offer price) ?

 

[eKwatee]

Hi,

I was about to ask the same question...

So what happens when you sign the contract with a finance clause, the cooling-off period expires and you weren't able to secure an acceptable finance?

Do you lose your holding deposit (I've read here this is usually 0.25% of the offer price) ?

In South Australia if the purchaser cannot secure finance then the whole of the deposit is refunded to the purchaser unless the deposit is $100 or less.